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a balance of land uses to address basic community needs <br />and which enhance the City's economic and fiscal viability. <br />In addition, the project is consistent with Policy 2.2 of the Land <br />Use Element, which supports commercial uses that <br />accommodate the City's needs for goods and services. <br />Furthermore, Policy 2.8 of the Land Use Element promotes <br />the rehabilitation of commercial properties, and encourages <br />increased levels of capital investment. The tenancy of 24 <br />Hour Fitness will include significant tenant improvements to a <br />building that has remained vacant due to significant shifts in <br />department store restructurings. Finally, Policy 5.5 of the Land <br />Use Element encourages development that is compatible with <br />and supporting of surrounding land uses. 24 Hour Fitness will <br />be located in a commercial area and its operation will be <br />compatible with the surrounding commercial businesses. <br />E. In accordance with the California Environmental Quality Act the <br />recommended action is exempt for further review per Section 15301. The <br />Class 1 exemption allows the operation, repair, maintenance, permitting, or <br />leasing of existing structures. The project consists of the re -tenanting of an <br />existing anchor store building. No expansion of square footage or interior <br />reconfigurations of existing square footage is proposed as part of the <br />project. The proposed tenant has been found by the City's development <br />review agencies to not create any adverse impacts. The fitness center is <br />proposed to be located on a site that is not designated by federal, state, or <br />local agencies to be an environmental resource of hazardous or critical <br />concern. The cumulative impact of this project will not be significant as <br />there are no other fitness facilities currently on or near the site, the <br />property is already served by roads and utilities, and will not create any <br />adverse impacts such as noise, traffic, or safety concerns. There is no <br />reasonable possibility that the project will have a significant effect on the <br />environment due to unusual circumstances. The project is not located <br />within a highway officially designated as a state scenic highway and will <br />not result in damage to scenic resources. The project is not located on a <br />site which is included on any list compiled pursuant to Section 65962.5 of <br />the Government Code. Lastly, the project is not proposed on a site that is <br />considered a historical resource or that is listed in the Santa Ana Register <br />of Historic Properties. As a result, Categorical Exemption Environmental <br />Review No. 2016-08 will be filed for this project. <br />Section 2. The applicant agrees to indemnify, hold harmless, and defend the <br />City of Santa Ana, its officials, officers, agents, and employees, from any and all liability, <br />claims, actions or proceedings that may be brought arising out of its approval of this <br />project, and any approvals associated with the project, including, without limitation, any <br />environmental review or approval, except to the extent caused by the sole negligence of <br />the City of Santa Ana. <br />Resolution No. 2016-30 <br />Page 3 of 6 <br />